Summary
Decreto-Lei n.º 1578/2006 is a Portuguese law that regulates the supervision and control of the financial and insurance sectors. The law establishes the legal framework for the supervision of credit institutions, insurance companies, and pension funds by the Portuguese Central Bank and the Portuguese Insurance and Pension Funds Supervisory Authority. The law sets out the criteria and procedures for the authorization, operation, and termination of financial and insurance entities, as well as their reporting requirements, prudential rules, and corporate governance standards. The law also provides for the establishment of a financial stability council to coordinate the macroprudential supervision of the financial system.